Multiplier Accumulator (MAC) unit provides high speed multiplication, multiplication with cumulative addition, multiplication with cumulative subtraction, saturation, and clear-to-zero functions. These operations are extensively used in Fast Fourier Transforms required by the MP3 Chip.The project involves in implementing a 16 bit multiplier accumulator unit based on the multiplier accumulator specification of the Analog Devices ADSP2181 chip. The MAC uses two 16 bit registers to obtain the data from the DMD and PMD bus. The 16 bit data from the registers will be used in multiplication and accumulation process in multiplier and adder unit accordingly. Output will be placed on the RBUS or back to DMD or PMD bus.